Alibaba (BABA)/ 9988 HK; Jack Ma 03 (May 21 - Jun 25)

[winston]

vested

Alibaba

Alibaba dominates the Chinese market with a market share of nearly 50%, according to Statista.

Alibaba operates several business units across logistics and entertainment but its e-commerce businesses, including Taobao and Tmall, contributed two-thirds of its total revenue last year.

Alibaba's Tmall relies on third parties to sell goods, where it earns a high margin charging commissions and fees on each transaction. This lends itself to a highly profitable business, where Alibaba generated $30 billion in free cash flow over the last four quarters.

However, the company's leading role in China's digital economy also means it's vulnerable to a weak economy. Slowing growth, along with the uncertain regulatory environment in China, has sent the stock well off its highs.

Alibaba's massive reach in China's e-commerce market could set up a big comeback. Across all business segments, revenue increased 9% year over year in the September-ending quarter, with Alibaba's international commerce business growing 53%.

Moreover, the company's operating profit jumped 34% year over year, further supporting the value underpinning the share price right now.

As China's economy emerges from pandemic-related disruptions, Alibaba stock offers significant upside.

The shares currently trade at a cheap forward price-to-earnings ratio of 7.5. This is a top turnaround candidate to bet on in 2024 and beyond.

Source: TMF

[winston]

vested

Alibaba Stock (NYSE:BABA): New Bullish Catalysts Have Emerged

SoftBank Finally Completes Divesting Alibaba

The Founder and President Are Betting on Alibaba

Alibaba Enjoys a Long Runway to Grow

Alibaba Cloud accounted for 34% of the cloud market in China at the end of Q1 2023, with Huawei Cloud in second place with a market share of 20%.

Source: TipRanks

https://finance.yahoo.com/news/alibaba- ... 25055.html

[winston]

vested

Alibaba considering sale of consumer assets including Freshippo, RT-Mart

By Julie Zhu & Kane Wu

Joe Tsai and Eddie Wu, have shifted focus back to its core profitable e-commerce business model while divesting non-core, loss-making units.

The assets also include shopping mall operator Intime.

These offline businesses do require a huge amount of effort and resources and it's proven quite difficult to actually integrate with their core business, which is the online commerce business.

Freshippo, or Hema in Chinese, is a supermarket chain in China which also offers services such as dine-in and 30-minute home delivery. Launched in 2015, it has more than 300 stores in 28 cities, according to its website. It was looking to list in Hong Kong last year.

Alibaba invested US$3.6 billion in 2020 to acquire a controlling stake in hypermarket operator Sun Art Retail Group Ltd, which runs RT-Mart, after buying a 21% stake in the company three years earlier.

Source: Reuters

https://theedgemalaysia.com/node/699663

[winston]

vested

Alibaba’s 80% Loss May Extend on Competition Worries

by Jeanny Yu

The derivatives market indicates further pain, with the options skew showing increased bearishness ahead of Alibaba’s earnings report due Wednesday.

Alibaba spent $9.5 billion on share buybacks last year, a record high and says it still has about $12 billion remaining through 2025 to spend on repurchases.

May spend half of its free cash flow on buybacks and could also announce special dividends after business divestments.

Revamp efforts led by the company’s new management include scaling down non-core business while stepping up investment in global expansion and artificial intelligence.

Moving resources from its Tmall site to Taobao in order to better meet demand for cheaper products.

Source: Bloomberg

https://finance.yahoo.com/news/alibaba- ... 11744.html

[winston]

vested

Why Alibaba Stock Popped on Monday

by Rich Smith

China is suffering from "weak" consumer confidence and "soft" hiring that are making growth "challenging" -- even for internet stocks.

Consensus forecasts have the company still growing earnings at greater than 12% annually over the next five years.

Alibaba is generating $24.5 billion in positive free cash flow.

Source: The Motley Fool

https://finance.yahoo.com/news/why-alib ... 57932.html

[winston]

vested

Alibaba Stock Jumps Ahead Of Earnings, Stimulus Hopes, But Is BABA Stock A Buy Now?

by KEN SHREVE

According to Zacks, Alibaba is expected to earn $8.80 a share in its current fiscal year 2024, up 11% compared to fiscal 2023, with growth slowing a bit in fiscal 2025, up 3% to $9.10.

Overhead supply issues are still a concern for Alibaba stock with the stock more than 30% off its high.

BABA's 200-day moving average at the time around 89.50 was a potential resistance level to watch.

With sellers dictating the action since early August, Alibaba stock is not a buy. But a move above the 20o-day line, currently around 84, would be enough to break BABA stock out of its latest downtrend.

Source: IBD

https://www.investors.com/research/alib ... src=A00220

[winston]

vested

Alibaba approves additional $25 billion share buyback as revenue disappoints

Alibaba posted a 5% increase in sales to 260.3 billion yuan ($36.67 billion).

Net income sank to 14.4 billion yuan ($2 billion), down 77% compared to the same time last year.

Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing.

Source: AP

https://finance.yahoo.com/news/alibaba- ... 46907.html

[winston]

vested

Alibaba to boost stock buybacks by US$25b

Posted a 5 percent rise in December quarter sales to 260.3 billion yuan (HK$286.3 billion) against an average 261 billion yuan as forecast by analysts.

The group's net profit for the period fell nearly 70 percent to 14.4 billion yuan from a year earlier.

The adjusted profit - a popular measure for tech companies - dropped 4 percent to about 48 billion yuan from a year ago.

Even if macroeconomic recovery occurs, price wars between platforms are likely to continue.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... -by-US$25b

[winston]

vested

BABA On Planned Listing of Cainiao & Hema: Mkt Conditions Have Not Reflected Intrinsic Value of Businesses

BABA-SW (09988.HK) Chairman Joseph Tsai responded to the group's planned listing of Cainiao and Hema, on an results conference call.

He said that current market conditions have not reflected the intrinsic value of the group's businesses.

Alibaba's current strategic focus is to promote synergies among different businesses but it will continue to consider separate financing for its businesses in the future, Tsai added.

Related News: BABA-SW 3FQ Revenue RMB260.35B, Roughly In Line

He also revealed that the company quitted US$1.7 billion of non-core assets in FY2024.

On how to exit some of the listed company's shares, he replied that Alibaba set up a special working group within the company.

For some non-core traditional physical retail businesses on the balance sheet, Tsai opined it is reasonable to withdraw from them, but more time is needed.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

Alibaba Group (9988 HK)

3QFY24: Increased Shareholder Return Plan; Pivoting Focus To Reignite Ecommerce Growth

Alibaba delivered in-line 3QFY24 results.

Revenue grew 5% yoy to Rmb260.3b, in line with street estimates.

Non-GAAP net profit was Rmb48b, down 4% yoy and in line with street estimates, with net margin of 18.4%.

Alibaba has approved an increase of US$25b to its share repurchase programme through to the end of Mar 27.

The company remains focused on achieving double-digit growth in ROIC and targets a 3% share reduction in the next three years.

Maintain BUY. Target price: HK$100.00 (US$100.00).

Source: UOBKH

https://research.uobkayhian.com/content ... c1357a6e07